Have you ever dreamt of an indicator or a buy/sell signal of your own based on parameters set by you? Creating such a thing can put you ahead all other traders who are not using something similar. Accomplishing this feat will not require massive amount of complexity of expertise. If you can learn a programming language with a not so difficult learning curve, you are ready to expand your trading horizons with a custom setup unique to you. It gets better; but we need to get ourselves introduced to the tool.

Beginner's Guide

Pine Script can be called TradingView’s native programming language. There are many things you can do with it inside of TradingView and not much else you can do outside of it. Since TradingView does offer the biggest collection of charts across many markets form cryptocurrencies we are used to + Stocks, Funds, Forex and even economic indicators such as Unemployment Rate, GDP, M2 Supply etc.

Pine Script is designed to interact with TradingView in as few lines as possible and it is not that difficult to understand even for someone who has only briefly touched on programming (like me).

How to Backtest a Trading Strategy on TradingView

If you don't have time for a 129 minute introduction, invest 8 minutes into the above video and see if it is the type of thing that will be useful to you. Backtesting strategies is a very important part of creating a good trading strategy. Having a tool to easily test and adjust your strategies for optimal outcome can bring your thousands or even millions of dollars in value to you based on the scale of your trading activities.

Traders Share Their Pine Script Code

They do it for many reasons including pure altruism. Once the code is made open source, it can be copied. and played around with to suite your need. I liked this approach when I started testing Pine Script. I didn't have time to formally learn everything from scratch. I was mainly curious about this programming language of TradingView.

Generative AI Can Help

I don't think you can gain an edge taking investment advice from an AI. They are merely playing around with the data it has been fed. Generative AI is a great way to create generic content or remix content. That "generic"-ness can be a help when learning new things. Instead of searching for pieces of code online, you can simply ask ChatGPT, Bing Chat, Bard or any other AI with similar capabilities to generate code to fit your specifications.

study(title="RSI and Bollinger Bands", shorttitle="RSI & BB", overlay=true)

// Input for RSI
rsi_length = input(14, title="RSI Length")
rsi_overbought = input(70, title="Overbought Level")
rsi_oversold = input(30, title="Oversold Level")

// Calculate RSI
rsi_value = rsi(close, rsi_length)

// Input for Bollinger Bands
bb_length = input(20, title="BB Length")
bb_mult = input(2.0, title="BB Standard Deviation")

// Calculate Bollinger Bands
basis = sma(close, bb_length)
dev = bb_mult * stdev(close, bb_length)
upper_bb = basis + dev
lower_bb = basis - dev

// Plot RSI and Bollinger Bands
plot(rsi_value, title="RSI", color=color.blue, linewidth=2)
plot(upper_bb, title="Upper Bollinger Band", color=color.red)
plot(lower_bb, title="Lower Bollinger Band", color=color.green)

// Highlight overbought and oversold conditions
hline(rsi_overbought, "Overbought", color=color.red)
hline(rsi_oversold, "Oversold", color=color.green)

// Buy signal: RSI crosses below oversold level and price is above lower Bollinger Band
long_condition = crossover(rsi_value, rsi_oversold) and crossover(close, lower_bb)
plotshape(series=long_condition, location=location.belowbar, color=color.green, style=shape.triangleup, title="Buy Signal")

// Sell signal: RSI crosses above overbought level and price is below upper Bollinger Band
short_condition = crossunder(rsi_value, rsi_overbought) and crossunder(close, upper_bb)
plotshape(series=short_condition, location=location.abovebar, color=color.red, style=shape.triangledown, title="Sell Signal")

It is a matter of few seconds to generate a set of signals as shown above. The performance is an entirely different problem. The title of this article said "May Give You An Edge"; not "Will Give You An Edge". Pine Script is a tool. It will free you from the shackles of depending on other people's indicators. But it is a tool that require time and effort to master.

Few More Helpful Videos

A great deal can be learned purely through free resources available. If you any of these things interest you, invest some time and try things out for yourself. It is not mandatory to know Pine Script to make money.

Alternative Methods Exist

There are people who push a single tool or technique as some savior or cheat code. I don't believe in such misplaced hype. I have seen success with simple vanilla indicators. I prefer to recommend new traders to use MACD, RSI or Bollinger Bands rather than getting overwhelmed by Pine Script or other complex approaches.

If you are investing for the long term and more focused on DeFi, Tokenomics and fundamentals of a project, it is completely possible to 100X your portfolio in a matter of few years. Don't let anyone tell otherwise. If a trader does not have such patience or have an itch to trade all the time, don't tell them to change their ways either. They both works and comes with their pros and cons. Technical Analysis is not a religion. You do not serve TA; TA should serve you.

Happy Investing!

Posted Using LeoFinance Alpha